The euro remained on a shaky footing after tumbling overnight when European Central Bank President Mario Draghi said the central bank might act to stem slowing inflation and boost the euro zone economy.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, on track for a slight weekly loss, but off session lows after data showed China's inflation in April was broadly in line with expectations.
Chinese consumer prices rose 1.8 percent in April from a year earlier while producer prices fell 2.0 percent.
"We expect producer price inflation to remain negative in coming months. The mini-stimulus measures already rolled out by the government are not enough to stop the dip in activity, and we think more pro-growth measures will be unveiled," said Li Huiyong, an economist at Shenyin & Wanguo Securities in Shanghai.
Japan's Nikkei stock average erased earlier losses and added 0.7 percent as investors covered short positions ahead of the weekend. The Nikkei was still set to post a weekly loss of more than 2 percent.
Markets also kept a wary eye on the Ukraine crisis. Pro-Moscow separatists in eastern Ukraine ignored Russian President Vladimir Putin's call to postpone a referendum on self-rule, declaring they would go ahead on Sunday with a vote that some fear could lead to war.
U.S. stocks mostly fell on Thursday with the Nasdaq Composite ending lower for a third straight session, its longest losing streak since early April.
But European shares climbed 1.1 percent after Draghi raised the prospect of ECB action next month to spur the euro zone economy.
The euro came off a 2-1/2-year high against the dollar on Draghi's comments. It was last at $1.3838, marginally lower on the day, and well off Thursday's high of $1.3992, its loftiest peak since November 2011.
As Draghi's dovish comments pushed the euro down 0.4 percent on Thursday against its U.S. counterpart, U.S. Federal Reserve Chair Janet Yellen did the dollar no favours.
Yellen said in testimony to a Senate panel on Thursday that the Fed is in no rush to decide the appropriate size of its balance sheet, but if it ultimately shrinks it to a pre-crisis size, the process could take the better part of a decade.
"In contrast to Mario Draghi, Janet Yellen provided very little clarity on monetary policy this week, keeping the downtrend in yields intact," Kathy Lien, managing director of FX strategy at BK Asset Management, wrote in a note to clients.
The 10-year U.S. Treasury yield was at 2.610 percent, not far from its U.S. close of 2.602 percent on Thursday.
The U.S. dollar index, which tracks the greenback against a basket of six major currencies, added 0.1 percent to 79.464. Against the yen, the dollar rose about 0.1 percent to 101.74 yen.
In commodities trading, U.S. crude futures were up 0.2 percent at $100.47 a barrel, on track to halt a two-week slide, while Brent crude added 0.1 percent to $108.14, as traders continued to watch the situation in Ukraine.
London nickel prices surged beyond $20,000 per tonne for the first time in more than two years on Friday, climbing nearly 4 percent as a flurry of supply concerns fuelled appetite for the stainless steel material.